Indian companies like Biocon, Bharat Biotech, Biological E,
Serum Institute and Shantha Biotechnics have world-class facilities for
biopharmaceutical manufacturing. Earlier there was some reluctance to award
contracts to Asian biopharma manufacturers because of concerns of IP and
regulatory compliance. But now some of the Asian countries are changing and
becoming very competitive in biopharma manufacturing. "Indian firms are
expanding and scaling up manufacturing capacities to become global players and
the West is increasingly becoming comfortable with the IP, quality, regulatory
filings and the infrastructure here," said Gautam Das, COO, Syngene.
Shasun Chemicals, Suven Life Sciences, Strides Arcolabs,
Jubilant Organosys, Orchid Pharmaceuticals and many other large Indian companies
have started undertaking contract manufacturing of APIs as part of their
additional revenue stream. Top MNCs like Pfizer, Merck, GSK, Sanofi Aventis, and
Novartis are dependent on Indian companies for many of their APIs and
intermediates.
Today Indian pharma companies have upgraded their existing
plants or built new plants which are not only GMP compliant but also approved by
international drug authorities. Many mid to large-sized ones have achieved GMP
approval of highly regulated markets such as the US, Europe, Australia, Latin
America and Canada. The most stringent, the USFDA approval is distributed
between large and mid size companies.
India triumphs in having maximum number of USFDA approved
plants after the US. India has over 80 USFDA approved plants and all comply with
WHO GMP. India is expected to have 30 percent more USFDA plants by 2008. The
large portion of this increase will be shared by mid size pharma companies. Most
of the companies are upgrading and building new facilities as per USFDA
standards. Apart from Andhra Pradesh and Gujarat, Himachal Pradesh is the next
favored state for setting up manufacturing plants. India comes fifth in terms of
API manufacturing. It has established itself as low cost and high quality API
production country. With product patent regime in its second year and several
products expected to go off patent in the next 2-3 years, India is well
positioned to capture the outsourcing opportunity.
With India emerging as a cost competitive outsourcing base
for global majors, Jubilant Organosys, an integrated pharmaceutical and custom
research and manufacturing services company, intends to be the preferred partner
for custom research and manufacturing to global leaders in the pharmaceuticals
and agrochemicals industry.
Jubilant Organosys recently signed a multi-million dollar
long-term agreement with Syngenta for the supply of pyridines. The new contract
will begin from early 2008 and it will cover an extension period of up to five
years, during which Jubilant will continue supplying the products to Syngenta.
Recently Jubilant expanded its production capacity for
pyridines and picolines to 42,000 TPA and this contract with Syngenta would
significantly improve the use of the additional capacity. With this multi-year
contract and increased capacities, Jubilant emerges as the largest player in
pyridines worldwide.
Jubilant Organosys have also acquired US-based Hollister–Stier
Laboratories LLC for $122.5 million. This is said to be the largest overseas
acquisition in contract manufacturing sector by an Indian company. The
acquisition significantly strengthens Jubilant's global CRAMS business via
entry into the high barrier injectables segment.
Hollister is an excellent strategic fit for Jubilant, as it
augments the company's growth in the CRAMS business globally. This acquisition
provides Jubilant with a platform within the fast growing injectables contract
manufacturing segment.
The company had signed annual contracts worth $60 million.
The contracts form part of the company's order book for the calendar year
2007. The contracts have been finalized with some of the leading global life
sciences companies in the US and Europe. In addition to these annual contracts,
the company as part of its normal business also executes half yearly, quarterly
and monthly contracts and spot sales.
The company will also focus on twin strategies of investments
in innovation and world-class manufacturing facilities. Currently, Jubilant is
in advanced talks with other global life sciences companies and is confident of
signing several other contracts for CRAMS over the next few months.